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FRA Employee Still Subject to Tier 2 Deductions Past Full Retirement Age
(Posted May 17, 2014)
Question 1130: I am vested with 10-1/2 years with a railroad. Currently I have 29 years with the Federal Railroad Administration. If I file for an annuity with the RRB at 66-1/2 years of age, will my continued employment with FRA impact the annuity amount? I do not have a broken Current Connection between the railroad and FRA.
Answer: Your continued employment with FRA is considered to be "Last Person Employment." Your Tier 2 will be reduced as long as you continue employment with the FRA. You will lose $1 in Tier 2 for each $2 that you earn with FRA up to a maximum of 50% reduction in your Tier 2.
Because you will be past your full retirement age, your earnings will not affect your Tier 1.
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